By 2017, the cracks that had long been forming beneath the surface of the Dewan empire were beginning to show in ways that could no longer be hidden. While headlines celebrated their achievements—from cement exports to cutting-edge automobile technology and sprawling real estate ventures—the corridors of Dewan House in Karachi echoed with whispers of internal dissent, regulatory red flags, and a mounting wave of public distrust.
Behind the walls of steel, cement, and industrial prestige, a storm was gathering.
Scene 1: A Distress Call from Finance
It was a humid afternoon in March when CFO Khalid Anwar summoned an emergency financial review.
"The liquidity stress is becoming structural," he said, eyes dark from sleepless nights. "We've crossed into negative cash flow on our textiles, logistics, and real estate projects simultaneously. And the cement business—though profitable—isn't enough to sustain the debt cycle."
Yousuf Farooqui leaned forward, fingertips pressed together. "What are our options?"
Khalid hesitated. "If we don't divest a non-core asset within 90 days, we will default on the next loan covenant."
Batool Qureshi, COO of Dewan Motors, interjected, "Can't we delay supplier payments? Maybe re-negotiate the margin facility?"
Khalid shook his head. "Suppliers are already anxious. And Allied Bank has just downgraded our risk rating."
Scene 2: A Board Divided
The emergency triggered a wave of internal division. At the next board meeting, held at the DHA Karachi executive office, battle lines were drawn.
Shahbaz Wasti, the independent board member, took a hard stance.
"This is what happens when strategy outpaces structure. We've expanded too fast without proper integration."
Batool bristled. "We are in competitive markets. If we wait, others take the lead."
Shehryar Farooqui, seated beside Yousuf, added, "It's time we hired an external CEO to manage operations. Yousuf bhai should move to chairman emeritus."
The room fell silent.
Yousuf finally spoke. "You want a hired hand to replace legacy? We didn't build this with MBAs and consultants. We built this with blood, risk, and vision."
But the room had heard something different: that even a visionary could lose control of his empire.
Scene 3: Investigative Spotlight
Around the same time, a whistleblower—later identified as a former procurement officer—leaked documents to investigative journalist Umar Cheema. The report appeared on the front page of The News International.
"Internal Memos Reveal Questionable Intercompany Transfers at Dewan Group"
The article alleged that:
Over Rs. 1.2 billion had been transferred between Dewan Cement and Dewan Motors without board approval.
Several invoices for imported auto parts had been "misplaced," with a mismatch in reported customs duties.
Supplier contracts were awarded without competitive bidding.
Scene 4: NAB and the Conspiracy Cloud
The report triggered a response from the National Accountability Bureau (NAB). Within a week, NAB Karachi announced a preliminary inquiry into Dewan Group.
In a private exchange, NAB's director of operations was overheard saying:
"There's pressure from Islamabad. This case is political. They want something on Farooqui before the elections."
Yousuf was summoned. In the interrogation room, an officer asked bluntly:
"You used MyBank to funnel internal loans, didn't you? That's why it collapsed."
Yousuf replied coldly, "MyBank failed because of sabotage and systemic misregulation. Look at your own State Bank audit."
"You deny money laundering?"
"I deny opportunism. Which is what this is."
Scene 5: A Media Trial
As the inquiry intensified, television anchors jumped on the scandal. Dewan was accused of:
Favoritism during land acquisition for Dewan Heights.
Undisclosed offshore accounts in the British Virgin Islands.
Political collusion during Yousuf's time as Minister of Industries.
News anchor Gharida Farooqi asked on live TV:
"Is Dewan Group another case of white-collar impunity—or are they victims of political victimization?"
Social media was less generous. Hashtags like #DewanLeaks and #IndustrialMafia trended for days.
Scene 6: The Internal Audit
In response, Dewan Group launched an independent internal audit led by KPMG. Preliminary findings suggested accounting discrepancies—but no criminal intent.
In a damage-control press conference, Yousuf stated:
"We are not saints. But we are not thieves either. We've created 32,000 jobs, trained thousands, and built from nothing. This is our audit. The facts will speak."
But investors were already spooked. Share prices dipped. Projects were put on hold. Government contracts were suspended.
Scene 7: Betrayal from Within
At the peak of the chaos, it was discovered that Danish Farooqui—once considered heir apparent—had been secretly negotiating with a Dubai-based investment fund to sell a minority stake in Dewan Properties.
When confronted by Yousuf, Danish replied:
"You asked us to save the house. I was just trying to keep the roof from falling."
Yousuf, for the first time, looked defeated.
"Not like this. Not behind our backs."
Scene 8: A Visit from the Past
In late 2017, a surprise visit from former Prime Minister Shaukat Aziz stirred more speculation. Over a private dinner at Marriott Islamabad, Aziz advised:
"You're facing a perfect storm—family, state, and market. My advice? Split the group. Cement and motors survive. Spin off the rest."
Yousuf asked, "And legacy?"
"Legacy without control is nostalgia," Aziz replied.
Scene 9: Decline or Transition?
As the year ended, the group began implementing restructuring:
Dewan Motors was carved into a subsidiary.
Dewan Cement sought a strategic partner.
Non-core assets, including Dewan Schools and the textile unit, were listed for sale.
Public perception was mixed. Was the empire cracking — or evolving?
Question for Readers: Were the cracks in the Dewan Group caused by internal mismanagement — or was the system always designed to break those who grew too big, too fast, without playing by the rules?